Price And Time Trading

One way of trading that is often overlooked by many traders, is trading price and time. This method of trading forecasts potential turning points in the markets. Two types of trading methods related to price and time are Fibonacci and the Gann Square of Nine.

Both these methods will allow you to find potential reversal points by both the price of the market and the date.

For Fibonacci, we take the previous high and low that stands out, as well as their respective dates. We then calculate the potential turning points by using Fibonacci ratios like .382, .50 and .618. Let's suppose we are looking at a market that had a low of 300 and a high of 400. The low was made on January 1st and the high was made on June 30th. We take the difference in the prices and the dates and multiply them by the ratios mentioned.

For the price, we subtract 400 300 = 100. We then multiply 100 by the ratios and subtract them from the second number which is 400.

So 100 * .50 = 50. 400 50 = 350. The .50 ratio gives us a reversal point of 350. Do the same for the .382 and .618 ratios.

100 * .382 = 38.20. 400 38.20 = 361.80.
100 * .618 = 61.80. 400- 61.80 = 338.20.

We now have 3 potential turning points in the market:

Price1: 361.80
Price2: 350.00
Price3: 338.20

For the time, we have applied the same calculations of the difference of the 2 dates and we get 3 dates where we have a potential reversal:

Date1: 9/6/2006
Date2: 9/28/2006
Date3: 10/19/2006

We are watching to see if Price and Time Meet. When the potential price hits at one of the potential dates, this means that Price and Time have met.

Gann is not as easy to do by hand. You will need a program or the Gann square of nine in printed format to be able to see what the forecasted price reversals are. Also for Gann , only one price and date are entered. It is based on the squares in the pyramid and their mathematical alignment to each other.

About the Author:
David Rivera is the developer of software which easily calculates potential reversals in markets based on price and time using Fibonacci and the Gann Square of Nine. You can learn about trading price and time by going to the following link: http://stock-commodity-trading.com

Article Originally Published On: http://www.articlesnatch.com

Tags: stock trading

, commodity trading

, forex trading

, fibonacci

, gann

Related....

Videos...

Recent Finance Articles

Create Favorable Property Purchases With Building Inspections: Professionals Get It Done By: Janelle Elizabeth | Jun 4th 2012 - Whether or not you are buying an existing house, having a new one made, or trying to find a business area, you have to be sure that you aren't shedding your hard earned money with a structure that w ...

building inspections

real estate fundamentals

Melbourne building inspection

Melbourne inspection companies

What Are Child Support Enforcement Agencies? By: Patrick Thompson | Jun 4th 2012 - Today, there are millions of divorced parents across the country. When it comes to divorce and the financial support of children, normally one parent is ordered by the court to pay child support to ...

child support collection

child support enforcement

Money Saver: Extend The Life Of Your Golf Cart Batteries By: Tom Kelly | Jun 4th 2012 - This article is about how much money one would spend on batteries and how they could reduce the expense of batteries.

In-law Or Accessory Apartment Can Help In Your Senior Living Options By: Shane Flait | Jun 4th 2012 - Older retirees don't like to sell their homes - especially, if they're single. However, generating needed income and some help with home upkeep often forces them to tap into home equity one way or a ...

How Much Do You Have Invested In Batteries? By: Tom Kelly | Jun 4th 2012 - We like to drive our cars, golf cars, boats and RVs. Companies and their warehouses depend on forklifts to move and restock products. All of these things move around because of batteries, replaci ...

Easy Ways To Save Cash Long Term On Your Insurance Premiums By: Winston Takeda | Jun 4th 2012 - In this article, you'll learn why staying with a more established insurance company can help you out in the long run.

Two Storey Home Builders For The Custom-made Ideal House By: Janelle Elizabeth | Jun 4th 2012 - Two storey home builders Perth gives each buyer the needed attention and each house the needed evaluation. Expect a high level of customer service from these devoted house builders. Read through thi ...

two storey home builders Perth

real estate fundamentals

real estate investment

buying a home

Loans For People On Benefits: Option That Comes Handy At Difficult Times By: Calvien Peter | Jun 4th 2012 - Loans for people on benefits are the easiest way to gather instant cash.

12 month loans for bad credit

small loans for bad credit

Make A Ppi Claims By: northeastppiclaims | Jun 4th 2012 - One of the toughest scams to impact the UK was due to the financial institutions and Insurance Companies, such as Barclays, who has several disappointed clients now implementing in an anxiety to dec ...

Barclays PPI Claims

RBS PPI Claims

Lloyds PPI Claims

Ppi Claim - The Right Of The Customer By: northeastppiclaims | Jun 4th 2012 - You are an applicant for Payment Protection claim if your financial institution pressured you to buy the plan. This pushing of the policy along with the mortgage comes in different ways. For example ...

Payment Protection Claim

PPI Compensation Calculator

RBS P

Comments

Still can't find what you are looking for? Search for it!

Site Navigation: